TelexBit Review: TelexFree Ponzi rebooted with bitcoin

It was founded in 2016 by a group of entrepreneurs who believed in the project of a renowned marketing company which was founded and directed by James Merrill, which injustice had their operations suspended, even without any irregularities.

Using a similar system, but combining the work the renowned encrypted currency Bitcoin, appears as a giant of Multilevel Marketing with consolidated plan and sales services lead customers save with national and international connections.

TelexBit claim to be registered in Nassau, Bahamas and provide a British Virgin Islands corporate registration number: 1805406.

It’s a safe bet that TelexBit has no physical presence in either the Bahamas or BVI.

Gary R Harrison is identified as the founder of TelexBit, however no further information on this individual is provided. Whether or not Harrison actually exists is unclear.

The TelexBit website domain (“telexbit.com”) was registered on the 3rd of August 2016, however the domain registration is set to private.

Of note is that the TelexBit website is hosted in Brazil and all official documentation from TelexBit is also on Portuguese.

Additionally, the TelexBit affiliate agreement states:

Compliance with the provisions of this GENERAL REGULATIONS for all TELEXBIT (affiliates) is subject to Brazilian law.

All of this strongly suggests that whoever is running TelexBit is based out of Brazil itself.

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

The TelexBit Product Line

TelexBit market a VOIP service they call 99TelexBit.

99TelexBit is accessed via a monthly $49.90 subscription, with customers able to

can call anywhere in the world and save on your calls

are guaranteed full coverage in national and international calls

have the ability to integrate VOIP into workstations, voice and data anywhere and

Retail Commissions

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

TelexBit cap payable unilevel levels at five, with affiliates paid 2% of 99TelexBit retail sales made by their unilevel team.

AdCentral ROIs

TelexBit affiliates invest in AdCentral positions, either for $289 each or $1375 for an AdCentral Family group of five positions.

If a TelexBit affiliate posts spam provided by TelexBit daily (once per AdCentral position invested in), the company provides them with a 99TelexBit account (one per AdCentral position invested in).

This 99TelexBit account can be resold back to TelexBit for $20.

In order to maintain an AdCentral position beyond 12 months, a TelexBit affiliate must reinvest 20% of the ROI paid out on that position.

AdCentral position direct commissions

When personally recruited affiliates purchase an AdCentral position, the affiliate who recruited them is paid $20.

When personally recruited affiliates purchase an AdCentral Family position, the affiliate who recruited them is paid $100.

Recruitment Commissions

Recruitment commissions in TelexBit are paid out via a binary compensation structure.

A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):

The first level of the binary is made up of two positions, with the second level generated by splitting each of the two positions into another two positions each.

Subsequent levels of the binary team are generated as required, with each new position housing twice as many positions as the previous level.

Positions in the binary team are filled via direct and indirect recruitment of new affiliates.

Note that in order to qualify for binary commissions, a TelexBit affiliate must personally recruit at least two affiliates with active AdCentral positions (one on either side of the binary).

At the end of each day new affiliates are tracked on both sides of the binary.

If a TelexBit affiliate’s two personally recruited binary affiliates have invested in single AdCentral positions, a $20 commission paid per paired newly recruited affiliates (capped at $440 a day).

If the recruited affiliates have invested in AdCentral Family positions, the daily cap is raised to $15,360.

Team Builder Bonus

If a TelexBit affiliate invests in and maintains at least ten AdCentral positions, they qualify for the Team Builder Bonus.

The Team Builder Bonus is made up of 2% of revenue generated by TelexBit.

Each month the Team Builder Bonus is distributed out equally to qualifying TelexBit affiliates.

Note that Team Builder Bonus earnings are capped at $39,600 every 12 months.

Royalty Bonus

The Royalty Bonus is made up of 1% of revenue generated by TelexBit.

To qualify for an equal share of the Royalty Bonus, a TelexBit affiliate must earn at least twenty-two $20 binary commissions over 20 days in any given month.

Note that this is an ongoing qualification that must be met each month in order to receive the Royalty Bonus.

Joining TelexBit

TelexBit affiliate membership is $50 a year.

In order to participate in the attached MLM opportunity, a TelexBit affiliate must also invest at least $289.

Conclusion

If I can go back to how TelexBit describe their business model on their website;

It was founded in 2016 by a group of entrepreneurs who believed in the project of a renowned marketing company which was founded and directed by James Merrill, which injustice had their operations suspended, even without any irregularities.

Using a similar system, but combining the work the renowned encrypted currency Bitcoin, appears as a giant of Multilevel Marketing with consolidated plan and sales services lead customers save with national and international connections.

The claim by TelexBit’s owner(s) that TelexFree was shut down “without any irregularities” found is absurd.

What we appear to have with TelexBit is a bunch of TelexFree investors looking to reboot one of the worst MLM Ponzi scams of all time.

At best it’s just a bunch of TelexFree investors from Brazil. At worst Carlos Costa and Carlos Wanzeler have something to do with it, which I’m sure one way or another will come out eventually.

Of note is TelexBit don’t appear to be concerned that they are a Ponzi scheme, but rather it’s the association with TelexFree they’re adamant doesn’t exist.

If you visit the TelexBit website, the following message pops up on any page you view:

Public statement of clarification

The TELEXBIT company, hereby clarifies the false news published on social networks which claims it is a company that is related to Telexfree or their representatives.

We know that the mentioned company goes through court proceedings and is not intended to disrupt in the same solution, since it is believed in the innocence of the above.

The systems are similar and the compensation plan. But there is no legal link between them.

All information linking the two companies are already being handled by our legal department, so that, to be publicly clarified the whole situation involving the companies.

The promoters of TELEXBIT can rest easy as the distinction between companies.

We believe in the innocence of Telexfree and we hope for a quick solution of their legal problems.

This sounds like someone from TelexFree management not wanting to get court, rather than some random investors wanting to clear the air.

In any event, the links between TelexBit and TelexFree are obvious.

Similar company name, logo, business model, marketing, target demographic and so on and so forth. If it was in TelexFree chances are you’ll find it in TelexBit.

The only difference is TelexBit is using bitcoin, so recovery of victim funds will be all the more difficult when the time comes.

Looking at the bigger picture, TelexFree litigation continues to play out in both Brazil and the US. The scheme is already on the radar of both country’s authorities, with tracking down who is ultimately running TelexBit not all that difficult (for a regulator).

Considering James Merrill is about to go on trial and Carlos Wanzeler is a fugitive hiding out in Brazil from authorities, I don’t expect TelexBit will take off.

That of course won’t stop early investors trying to scam people into the reboot scheme and turn a quick profit, but you’d hope the mess TelexFree created would act as a strong deterrent against investment in what is essentially an identical Ponzi scheme.

Interestingly there us now a notice in Portuguese on the website claiming they have no connection whatsoever to Telex free (as falsely claimed in social networks) and they are aware there is an ongoing court case.

So now they think a ponzi run through bitcoin instead of fiat currency somehow protects them from legal intervention but investors have to look at the flip side of the coin on this as there is absolutely no obligation or even retribution to payback those that are investing in the first place.

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